Fertility and Its Consequence on Family Labor Market Participation

Jungho Kim, Vienna Institute of Demography
Arnstein Aassve, University of Essex

While a large body of literature focuses on how fertility affects female labor market participation, there are relatively few studies that examine the effect of fertility on male labor market outcomes. Even if the burden of child care falls mainly on women, an exogenous increase in fertility is likely to change the optimal allocation of time, therefore, the labor supply decision of both women and men in a household. This paper examines how an exogenous increase in fertility affects the labor market participation of a woman and a man in a household in Indonesia. The finding is that women reduce their working hours in response to higher fecundity. On the other hand, higher fecundity does not lead to men increasing or decreasing their working hours. Further, there is no evidence that fertility affects female or male earnings.

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Presented in Session 40: Work, Child Care and Fertility